Tánaiste Mary Coughlan has said she hopes all sides will be able to come together 'for the betterment and sustainability' of Aer Lingus.
Speaking in Dundalk this afternoon, Ms Coughlan said all the industrial relations mechanisms of the State are available if needed.
It was a difficult and challenging time for the aviation industry, and she said she wanted to see three strong airlines to continue in Ireland - Aer Lingus, Ryanair and Aer Arann.
The Tánaiste's comments came after it emerged that Aer Lingus is considering up to 1,100 compulsory redundancies and the scaling back of its operations if staff fail to approve a €97m cost-reduction programme.
A ballot on the plan is taking place.
In light of its deteriorating financial situation, the airline announced last October it was seeking the savings, including staff cost reductions, totalling €74m and involving around 700 redundancies, pay cuts and pension changes.
However, since then, unions and management have been in negotiations on alternative ways of securing cost reductions.
Agreement was reached with each sector including pilots, cabin crew, ground staff and craft workers.
The proposals are currently being put to ballot with a recommendation for acceptance.
However, it is understood that management now fears that staff may not accept the proposals.
Aer Lingus Chief Executive Christoph Mueller has briefed his management team to prepare 'Plan B' to secure the required cost savings through compulsory redundancies and a significant fleet reduction.
Aer Lingus originally set a target of 18 November to reach agreement on the cost-reduction package.
Unions have strongly criticised the contingency plans for the compulsory redundancies and reductions in routes if the cost-cutting programme is not approved.
A pilot source told RTÉ News that the contingency proposals are a counter-productive threat, which was 'very stupid'.
The source said this was part of 'the Aer Lingus they thought they had seen the back of' with the departure of the last management team.
Staff moving to Hanger 6
In relation to Hangar 6, the Tánaiste said the Government had been as fair and as reasonable as they can.
It was not within their remit to take Hanger 6 off Aer Lingus and if the situation was reversed, she did not think Ryanair would be enamoured if the State interfered with them.
She reiterated that alternatives had been made available to Ryanair to provide them with a large hangar for the maintanence of their aircraft.
It was revealed overnight that Hangar 6 is to house a new centralised staff operations centre for Aer Lingus.
The hangar is already home to Aer Lingus' maintenance division and has space for more than 400 staff in modern offices.
By the middle of this year, the hangar will accommodate 350 staff, including a new centralised operations centre comprising maintenance stores, technical stores, operations control, flight operations and cabin operations.
A spokesman for the airline said one or two pieces of real estate that Aer Lingus currently occupies are coming to the end of their leases, including its technical building, so staff there are being moved to the hangar.
